Conferences

Contractual Risk, Insurance and Indemnities

Overview:

INTRODUCTION

In every organisation care is taken to manage risks, by seeking to eliminate those that can be removed, and reducing and managing the remainder. Part of this process involves developing robust contracts which apportion risk equitably and include a structure of indemnities with contractors, supported by a comprehensive insurance regime. In addition, it is important that contract personnel understand contractual risks and what insurance can (and cannot) do to remove the financial consequences of such risk; remembering always that insurance only mitigates the effect of risk, it does not make the risk itself go away. This programme is designed to:

Provide an understanding of contract structures, and how and why contracts are drafted in particular ways

Enhance understanding of the legal principles behind contracts

Provide an understanding of some of the main clauses in different types of agreements

Explain the commercial impact of particular provisions

Explore the usual models for indemnity regimes in international contracts

Enable participants to understand the significance, and limitations of such regimes

Help participants to understand the meaning of insurance arrangements, and the terminology used

Ensure participants appreciate the effect of insurance, and it limitations in the management of risk

Explain how to use contract provisions to reduce the risk of disputes

Where disputes do arise, show how the contract can be used to minimise these disputes, and some of the methods by which disputes are resolved in international contracting (including non-traditional approaches, such as mediation)

CONFERENCE OBJECTIVES

A more in depth understanding of the elements of a contract

How to analyse complex contact documents, and understand the inter-relationship between clauses

How to develop effective indemnity regimes

Appropriate type and form of indemnities in different contracts

How to use indemnities to manage risks

The limitations of indemnity clauses

How to link indemnity and insurance arrangements

What types of insurance are available in a contracting context

How to develop insurance clauses

The latest thinking in dispute resolution techniques

CONFERENCE METHODOLOGY

The conference will combine conventional teaching with a high level of participation; including an interactive approach to involving participants in discussion of topics; exercises; and encouraging participants to bring their own experiences forward for discussion and debate.

CONFERENCE SUMMARY

Expanding the expertise of personnel involved in contract negotiation and management will allow tender preparation to be more effective, as clearer instructions can be given to lawyers, and the final document can be more focused to the company’s needs

Documents will also be more effective if all parties involved in their preparation and approval are confident in their understanding of the potential effect of important clauses, and of best practice in the area concerned

Skills learned on the course will allow contract negotiations to be conducted with more confidence, and with the ability to deal with issues quickly and with certainty, thus reducing the time taken to bring negotiations to a conclusion

Non-lawyers will find it easier to instruct and work with specialist lawyer colleagues, improving the performance of both parties

Dispute avoidance skills will be enhanced, as will the ability to manage such disputes as do arise in an effective manner

Delegates will be introduced to some of the latest international practices in dispute resolution, and shown how to build such practices into their contract documents

Heighten understanding of the meaning of contract wording, and the inter-relationship between clauses, and why contract law is important to you as either a Buyer or a Seller

Increase working knowledge of risk, legal implications and liabilities

Improve confidence in handling negotiations on contract wording, and an understanding of how contract wording is developed

Improve understanding of different approaches to important issues in contracts

The use of indemnities and insurance arrangements in major contracts, particularly in the oil and gas industry, in an international context.

Help develop general skills with application in these areas, and to allow participants to have a better understanding of these important provisions, which are frequently not understood by those operating the contract on a day to day basis.